Lemon Tree Hotels Limited has unveiled a Composite Scheme of Arrangement to simplify its group structure and enhance strategic focus, alongside a major investment from Warburg Pincus in its subsidiary Fleur Hotels Limited. The reorganization will create two distinct platforms: Lemon Tree as a pure-play, asset-light hotel management and brand company, and Fleur as a large-scale hotel ownership and development platform.
As part of the transaction, Coastal Cedar Investment B.V., an affiliate of Warburg Pincus, will acquire APG’s entire 41.09% stake in Fleur and commit up to ₹960 crore of primary capital to support Fleur’s growth. This marks a renewed partnership between Warburg Pincus and Lemon Tree, following their earlier collaboration in 2006 that helped establish Lemon Tree as a leading mid-market hospitality brand.
Under the scheme, Lemon Tree’s hotel assets—including 12 properties and development capabilities—will be transferred to Fleur, which will lead all future acquisitions and development. Lemon Tree will transition to a fully asset-light model, focusing on hotel management, franchising, and digital-led growth. Fleur will also be listed separately on NSE and BSE within 12–15 months.
Patanjali Govind Keswani, Founder and Executive Chairman of Lemon Tree and Fleur Hotels, said: “This scheme creates a simplified, transparent, and growth-oriented structure for both companies. We are pleased to renew our partnership with Warburg Pincus as we enter the next phase of expansion for Fleur. With India’s hospitality industry at an inflection point, this collaboration will help us scale responsibly, advance digital capabilities, and embed sustainability as a core pillar of growth.”
Following the reorganization, Fleur will become one of India’s largest hotel asset owners, expanding from 3,993 keys across 24 hotels to 5,813 keys across 41 hotels. Lemon Tree will continue to manage and franchise its portfolio, with 6,011 keys across 89 operational hotels and 9,414 keys across 127 hotels under development domestically and internationally.
This strategic move underscores Lemon Tree’s commitment to unlocking long-term shareholder value, strengthening its balance sheet, and positioning both Lemon Tree and Fleur for sustained growth in India’s rapidly expanding hospitality sector.
